Alony-Hetz Properties and Investments Ltd.
Income-Producing Real Estate
Chairman of the Board
Alony-Hetz Properties and Investments Ltd.
View ProfileNathan Hetz
Aviram Wertheim Chairman of the Board
Moti Barzilay EVP Business Development
Oren Frenkel CFO
Hanan Feldmus Legal Counsel & Company Secretary
About Alony-Hetz Properties and Investments Ltd.
Alony-Hetz is one of Israel’s leading income-producing real estate companies. The company focuses on investments in income-producing properties in western developed countries through holdings that give it substantial influence on local real estate companies. The group invests in offices and commercial centers while seeking geographical diversity and a broad base of tenants.
The company implements a cautious investment policy, spread across five western countries, currencies and economies, maintaining low leverage and high liquidity, which has led to consistent, stable growth in FFO and impressive growth in net profit in recent years. The company is traded on the Tel Aviv Stock Exchange (TASE) with NIS 7.4 billion market value as of April 2019, and NIS 5.8 billion equity by December 2018. Net profit for 2018 was NIS 514 million. The leverage rate in December 2018 was 34.2%, with 94% of unencumbered assets. The company has distributed a dividend every quarter for over 20 years and declares the annual dividend ahead of time that it intends to distribute every quarter.
Diversification Growth-Focused Strategy
The Group’s operations (assuming full consolidation of Amot, CARR, PSP, buildings in Boston and Brockton Everlast) include 287 assets, 4,000 tenants, and 2.25 million-sqm. of leasable space.
Details of Activities
Alony-Hetz currently operates in five countries. Activities are implemented through substantial holdings in the following companies:
CARR PROPERTIES – USA (Alony-Hetz holds 43.7%) CARR invests and develops (including management and maintenance) office buildings in the Washington DC metropolitan area with a focus on trophy buildings. The second largest shareholder is JP Morgan. As of December 2018, CARR holds 17 office buildings with a leasable area of 400,000 sq.m. and valued at $3.4 billion. The leasing rate in December 2018 was 93%. CARR owns 4 development projects with a total construction budget of $1.3 billion, of which $0.3 billion was invested untill December 2018.
Amot – Israel (Alony-Hetz holds 58%)
Amot, an Israeli public company, is Alony-Hetz’s investment arm in Israel and holds, leases and develops income-producing real estate assets mainly in central Israel (92% of properties are in the Tel Aviv Metropolitan area). Amot owns 102 buildings with 840,000-sq.m. leased space worth NIS 10.2 billion, with an impressive 97.2% occupancy rate. As of December 2018, Amot owns three development projects with a leasable area totaling 82,000-sq.m.
PSP – Switzerland (Alony-Hetz holds 10.03%)
PSP is the second largest real-estate company traded in the Zurich Stock Exchange and one of the largest real estate companies in Europe. PSP’s equity in December 2018 was 4.2 billion Swiss Francs and it owned 163 income-producing Swiss properties totaling 913,000 sq.m. valued at 7.4 billion Swiss Francs. 63% of the PSP’s properties are offices. 68% of the PSP’s portfolio is in Geneva and Zurich. PSP has an international credit rating of A- by Fitch and A3 by Moody’s. Alony-Hetz is PSP’s largest shareholder.
AH Boston, USA
Alony-Hetz has 55% of the equity interests and 50% of the control interests in three companies that own office buildings in the Boston CBD and in East Cambridge with 80,000-sq.m leased space worth $680 million. The Company’s partner in Boston is Oxford Properties, considered one of the largest rental real estate investors in Boston.
Energix Renewable Energy Ltd. – Israel and Poland (Alony-Hetz holds 61.9%)
A public Israeli company, engaged in initiating and constructing electricity producing facilities and selling electricity in Israel, United States and in Poland produced with clean energies using photovoltaic and wind technologies. As of December 2018, Energix owns generating systems with an installed capacity of 258 MW. The company has a pipeline of 500MW photovoltaic and wind projects in Israel and hundreds of MW in the United States and Poland. The company’s market value is NIS 2.3 billion and by December 2018 its equity was NIS 700 million.
Brockton Everlast – UK
During 2018, Alony Hetz together with and the managing partners of Brockton Capital, founded Brockton Everlast, a real estate company that owns, manages and develops income producing properties in the UK, mainly in the London metropolitan area. Up to March 2019, Brockton Everlast made two investments in office properties in central London totaling £195 m with a total GLA of 23,000 sqm. In addition, Alony-Hetz has an investment in Brockton Capital, a real estate investment group of funds, investing in a wide range of real estate properties, mainly in London.
Alony-Hetz contributes and invests in Israeli community activities focused on education.
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